For the second time in 10 years, a former banking executive from Williamsville has pleaded guilty to federal fraud charges, according to prosecutors.
Robert C. Logel faces up to 20 years in prison and a $250,000 fine after he pleaded guilty last week in federal court to tax evasion and wire fraud charges, the U.S. Attorney's Office said.
Logel, 55, was sentenced to four years in prison in 2009 after he admitted cheating two investors out of millions of dollars, authorities said at the time.
Logel's latest scheme, according to U.S. Attorney James P. Kennedy's office, started within months of being released from prison in May 2013.
This time, Logel's plot involved the production, distribution and sale of two skin and healthcare products, Nano Hydro Mist and Hot Ginger Muscle Rub. Prosecutors said Logel made false claims about being to market and distribute the products. But instead of using his victims' money as promised, he spent most of it on things like car payments, college tuition, rent for his and his girlfriend's apartments and cosmetic surgery, prosecutors said.
One of the victims, QuaDPharma, a Clarence-based pharmaceutical manufacturing company, lost more than $410,000. Six other victims suffered losses of more than $140,000, according to authorities. Logel was arrested and charged in the latest scheme in February 2017.
Logel also failed to file four years' worth of income tax returns from 2004 through 2007, according to prosecutors. That led to a loss for the IRS of more than $5.5 million.
In August 2008, he was charged after a lengthy investigation with swindling three investors of nearly $3 million, promising their money would be used to acquire shares in companies but then failing to purchase the shares, prosecutors said at the time. Logel was the founder and former managing director of Spaulding Ventures, an Amherst company that specialized in raising funds for new and growing businesses. In that scheme, he even sent reports to the victims assuring them that their investments were doing well, authorities said.
In April 2009, Logel pleaded guilty to a felony wire fraud charge. He admitted cheating a Texas man out of more than $2.2 million and an Ellicottville dairy farmer out of more than $448,000.
Assistant U.S. Attorneys Jonathan P. Cantil and MaryEllen Kresse handled the most recent case. Logel is scheduled to be sentenced by Chief U.S. District Court Judge Frank P. Geraci Jr. on Aug. 15.